Rapid Fire August 31, 2012: SAIC to Split

SAIC announces it intends to split into two listed entities. The spin-off will focus on government and enterprise IT services, which they expect to be a $4B/year business. The bulk of SAIC’s work on defense programs will stay in what they call the “solutions-focused business”, a $7B/y company that will also pursue engineering and health markets. SAIC was for decades an employee-owned company, as its tagline used to proudly proclaim until it went public in 2006.

Andrew Erickson and Gabe Collins argue in The Diplomat that China is simply modernizing its Navy, not building the sort of blue water fleet that would allow deep projection. Maybe. They do seem in a hurry though.

One place to watch to read China’s real intents is Pakistan’s deep-water port in Gwadar, in the Balochistan province close to the border with Iran. So far the project has not lived up to its promises, but talks of a Chinese takeover are intensifying as the Singapore Port Authority (SPA) that handled the port is about to pull out. China has already spent more than $200M there since 2007, so far with little to show fo it, and their security in the region is far from guaranteed. [Jan. 31, 2013 update: transfer from SPA to a Chinese company is done.]

The US Navy relieved of his command Cmdr. Martin Arriola who was commanding officer of USS Porter (DDG 78) when a tanker crashed into it near the Strait of Hormuz earlier this month.

Huntington Ingalls Industries will keep its Gulf Coast shipyards closed until next week, in the wake of Hurricane Isaac.

Several American defense contractors are concerned that export restrictions under consideration by the US government over infrared technology may make them lose opportunities to foreign competitors on commercial applications, not just military ones.